Globalization, Fragmentation and the Evolution of Economic Thinking

Abstract

The once prevailing consensus that the benefits of globalization outweigh its costs (by far) has broken down in recent years. There is widespread discontent and increasing polarization between cosmopolitan and nationalist views in many corners of the world, spurred by conflicts about trade, migration, multilateral governance and geopolitical ambitions. The reputation of economists as experts on globalization is impaired since their discipline appears to have largely lost “the big picture” out of sight. This paper argues that these developments have followed from an interaction of three types and trends of fragmentation: economic, political and scientific.